ATTRIBUTES, QUALITIES,

AND CHARACTERISTICS
OF AN ENTREPRENEUR
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 The Entrepreneur
 According to Schumpeter (1950), an

entrepreneur is a person who is

willing and able to convert a new
idea or invention into a successful
innovation.
 Schumpeter is also famous for

the phrase “creative

destruction”
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 The Entrepreneur
 Webster’s – someone who runs a

business at his or her own financial

risk
 An entrepreneur is a person who

undertakes the creation of an

enterprise or business that has the
chance of profit (or success).
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 Who is the Entrepreneur?
• Somebody who has IDEAS and
makes these ideas happen or come
to life.
• Must have some BUSINESS SKILLS
(ideation, creativity & innovation)
• Somebody who ASSUMES RISKS
• Desires to MAKE PROFIT
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 The Role of an Entrepreneur:
1. Entrepreneurs are innovators
 They observe an opportunity.

 They create new goods and services.

 They improve existing products.

 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 The Role of an Entrepreneur:
2. Entrepreneurs provide choice
 They add goods and services to the

marketplace.
 They offer variety.

 They design different approaches to

familiar
problems.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
 The Role of an Entrepreneur:
3. Entrepreneurs provide jobs
 They hire workers for their

businesses.
 They consume resources, thus

providing jobs in
the industries that supply those
resources.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Role of an Entrepreneur:
4. Entrepreneurs help the
economy grow.
 Why Become an Entrepreneur?
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The three primary reasons that people become
entrepreneurs and start their own firms

Desire to be their own boss

Desire to pursue their

own ideas

Financial rewards
 Characteristics of Successful Entrepreneurs
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Four Primary Characteristics
 Characteristics of Successful Entrepreneurs
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 Passion for the Business

 The number one characteristic shared by successful
entrepreneurs is a passion for the business.
 This passion typically stems from the entrepreneur’s belief
that the business will positively influence people’s lives.
 Product/Customer Focus
 A second defining characteristic of successful
entrepreneurs is a product/customer focus.
 An entrepreneur’s keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.
 Characteristics of Successful Entrepreneurs
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 Tenacity Despite Failure

 Because entrepreneurs are typically trying something new,
the failure rate is naturally high.
 A defining characteristic for successful entrepreneurs’ is
their ability to persevere through setbacks and failures.
 Execution Intelligence
 The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an Entrepreneur:
1. Inner Drive to Succeed
Entrepreneurs are driven to succeed
and expand their business. They see the
bigger picture and are often very
ambitious. Entrepreneurs set massive
goals for themselves and stay
committed to achieving them regardless
of the obstacles that get in the way.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an Entrepreneur:
2. Strong Belief in themselves
Successful entrepreneurs have a healthy opinion of
themselves and often have a strong and assertive
personality. They are focused and determined to
achieve their goals and believe completely in their
ability to achieve them. Their self optimism can
often been seen by others as flamboyance or
arrogance but entrepreneurs are just too focused
to spend too much time thinking about un-
constructive criticism.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an Entrepreneur:
3. Search for New Ideas and
Innovation
All entrepreneurs have a passionate
desire to do things better and to
improve their products or service.
They are constantly looking for ways
to improve. They're creative,
innovative and resourceful.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an Entrepreneur:
4. Openness to Change
If something is not working for them they
simply change. Entrepreneurs know the
importance of keeping on top of their
industry and the only way to being number
one is to evolve and change with the times.
They're up to date with the latest technology
or service techniques and are always ready
to change if they see a new opportunity
arise.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an
Entrepreneur:
5. Competitive by Nature
Successful entrepreneurs thrive on
competition. The only way to reach
their goals and live up to their self
imposed high standards is to
compete with other successful
businesses.
 Attributes, Qualities, and
Characteristics of an
Entrepreneur
The Qualities of an Entrepreneur:
6. Highly Motivated and Energetic
Entrepreneurs are always on the move,
full of energy and highly motivated.
They are driven to succeed and have
an abundance of self motivation. The
high standards and ambition of many
entrepreneurs demand that they have
to be motivated!
 Attributes, Qualities, and
Characteristics of an

Entrepreneur
The Qualities of an Entrepreneur:
7. Accepting of Constructive Criticism and
Rejection
Innovative entrepreneurs are often at the forefront of
their industry so they hear the words "it can't be done"
quite a bit. They readjust their path if the criticism is
constructive and useful to their overall plan, otherwise
they will simply disregard the comments as pessimism.
Also, the best entrepreneurs know that rejection and
obstacles are a part of any leading business and they
deal with them appropriately.
 Types of Entrepreneurs
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 Novice Entrepreneur
 Has no prior business ownership

experiences as a business founder,

inheritor, or purchaser
 Habitual Entrepreneur

 Has prior business ownership experience

 Nascent Entrepreneur

 In the process of starting a new business

 Can be either a novice or a habitual

entrepreneur
 Types of Entrepreneurs
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(cont’d)
 Serial Entrepreneur
 Has sold or closed an original business

and establishes another new business

 Continues the cycle of selling/closing

and establishing
 Portfolio Entrepreneur
 Retains an original business and builds

a portfolio of additional businesses

 Through inheriting, establishing, and
purchasing the businesses
 Common Myths About Entrepreneurs
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 Myth 1: Entrepreneurs Are Born Not Made

 This myth is based on the mistaken belief that some people
are genetically predisposed to be entrepreneurs.
 The consensus of many studies is that no one is “born” to
be an entrepreneur; everyone has the potential to become
one.
 Whether someone does or doesn’t become an entrepreneur,
is a function of the environment, life experiences, and
personal choices.
 Common Myths About Entrepreneurs
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Although no one is “born” to be an entrepreneur, there are common
traits and characteristics of successful entrepreneurs

• Achievement motivated • Optimistic disposition

• Alert to opportunities • Persuasive
• Creative • Promoter
• Decisive • Resource
assembler/leverager
• Energetic
• Self-confident
• Has a strong work ethic
• Self-starter
• Is a moderate risk taker
• Tenacious
• Is a networker
• Tolerant of ambiguity
• Lengthy attention span
• Visionary
 Common Myths About Entrepreneurs
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 Myth 2: Entrepreneurs Are Gamblers

 Most entrepreneurs are moderate risk takers.
 The idea that entrepreneurs are gamblers originates from
two sources:
 Entrepreneurs typically have jobs that are less structured, and so
they face a more uncertain set of possibilities than people in
traditional jobs.
 Many entrepreneurs have a strong need to achieve and set
challenging goals, a behavior that is often equated with risk taking.
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 Myth 3: Entrepreneurs Are Motivated Primarily by

Money.
 While it is naïve to think that entrepreneurs don’t seek
financial rewards, money is rarely the reason entrepreneurs
start new firms.
 In fact, some entrepreneurs warn that the pursuit of money
can be distracting.
 Common Myths About Entrepreneurs
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 Myth 4: Entrepreneurs Should Be Young and

Energetic.
 The most active age for business ownership is 35 to 45
years old.
 While it is important to be energetic, investors often cite
the strength of the entrepreneur as their most important
criteria in making investment decisions.
 What makes an entrepreneur “strong” in the eyes of an investor is
experience, maturity, a solid reputation, and a track record of
success.
 These criteria favor older rather than younger entrepreneurs.
 Entrepreneurship and
the Entrepreneurial
Process
Understand entrepreneurship
and the entrepreneurial process.

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 Entrepreneurship vs.
Entrepreneurs
Entrepreneurship Entrepreneur

 The process of  An entrepreneur is

starting and an individual who
running one’s undertakes the risk
associated with
own business
creating,
 This involves a organizing, and
considerable owning a business.
amount of risk.

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 5 Steps of the
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Entrepreneurial Process
 1. Discovery
 2. Concept Development
 3. Resourcing
 4. Actualization
 5. Harvesting
 Step 1: Discovery
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The stage in which the entrepreneur

generates ideas, recognizes
opportunities, and studies the market.

 Entrepreneurs consider the following:

Hobbies or Skills
Consumer Needs and Wants

Conduct Surveys and Questionnaires

Study Demographics
 Step 2: Concept
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Development
Entrepreneurs prepare the
following in this step:
Develop a Business Plan


 A detailed proposal describing the business idea

Choose Location for the Business


 Is the business online or does it have a physical location

for customers to visit to purchase products, services or
combinations.
Decide if the idea will need a Patent or Trademark


 Patent –
 Trademark -
 Step 3: Resourcing
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 The stage in which the entrepreneur

identifies and acquires the financial,
human, and capital resources
needed for the venture startup, etc.

Entrepreneurs contemplate the

following:
Identify Potential Investors
Apply for loans, grants and financial assistance

Hire employees
 Step 4: Actualization
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The stage in which the

entrepreneur operates the
business and utilizes resources to
achieve its goals / objectives

Entrepreneurs prepare for the

following:
Grand Opening of the Business
Day to Day Operations of the Business
 Step 5: Harvesting
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 The stage in which the entrepreneur

decides on venture’s future growth,
development, or demise.

Entrepreneurs consider the

following:
Future Plans for the Business:


 Expansion to additional locations

 Company to change structure
 Starting a Business

Understand the procedures and

requirements
for starting a business.

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 Starting a Business
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 1. Develop a Business Plan

 2. Acquire Finances

 3. Meet Legal Requirements

 Develop a Business Plan
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A Business Plan is a detailed

proposal that describes a new
business.

 Business Plans are:

 Presented to potential investors and lenders
 Most business plans are 30+ pages
 Purposes of a Business
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Plan
 Business Plans are used to:
 Obtain Financing
 Banks and Potential Lenders require a business plan

 Helps organize and analyze data critical to new

business.

 Provides a start-up proposal

 Provides and outline to follow when starting the business.
 Components of a Business
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Plan
 Executive Summary:
 Brief one to two page description of the key
points of each section of the business plan
 Product/Service Plan:
 Presents Product or Service being offered
 Unique features of the Product or Service
 Management Team Plan:
 Qualifications of the Entrepreneur
 Qualifications of any Partners who may be
involved in the business venture
 Components of a Business
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Plan
 Industry/Market Analysis:
 Analyzes the: Customers / Competition / Industry
/ Demographic / Geographic and Economic data
 Operational Plan:
 Includes all processes involved in producing
and/or delivering the product or service to the
customer
 Organizational Plan:
 Management philosophy of the business
 Key management personnel
 Key employment policies
 Components of a Business
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Plan
 Marketing Plan:
 Describes how the business will make its customers aware of its
products/ services.
 The Market being served / Marketing Strategies / Promotional
Plan / Marketing Budget

Growth Plan:
 Presents plan for future expansion of the business
 Financial Plan:
 Includes financial statements that will help forecast the
future financial health of the business.
 Finance the Business
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 Identify Potential Investors

 Examples:
 Family and Friends
 Other Businesses
 Employees
Contact Financial Agencies for loans, grants and


financial assistance:
 Small Business Administration

 Banks / Credit Unions

 Insurance Companies
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